Indiana-based Hillenbrand’s fully owned subsidiary Milacron Holdings has signed an agreement to sell its Cimcool business to DuBois Chemicals for $224m.
In addition, Hillenbrand will receive $26m in contingent purchase price upon a future sale of the combined DuBois and Cimcool businesses.
The sale is part of Hillenbrand’s previously announced strategic review of alternatives for the business, which was part of the 2019 acquisition of Milacron Holdings.
The company intends to use proceeds from the sale for de-leveraging activities that will strengthen its financial position.
Hillenbrand president and CEO Joe Raver said: “The divestiture of Cimcool aligns with our previously disclosed intent to seek strategic alternatives for the business and allows us to remain focused on the continued integration of the Milacron APPT and MDCS businesses with Hillenbrand.”
DuBois specialises in customised and value-added speciality chemicals solutions and services. It manufactures a broad range of speciality chemical products and related equipment for a variety of industries.
DuBois president and CEO Jeff Welsh said: “We are excited that our customers will have access to a new set of solutions, applications experts, and technical service resources to support and add value to their businesses. Sorry, there are no polls available at the moment.
“We believe that this acquisition will allow us to increase our presence among significant customers and important segments. The expanded product portfolio of the combined organisation will also allow us to meet our customers’ evolving needs in new applications areas.”
Cimcool produces metalworking fluids for the automotive, aerospace, and industrial sectors.
The transaction is expected to be closed on 30 March this year.
Source: Chemicals Technology
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